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Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The companys planning budget for July appears below: Flight

Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The companys planning budget for July appears below:

Flight Caf
Planning Budget
For the Month Ended July 31
Budgeted meals (q) 24,000
Revenue ($4.50q) $ 108,000
Expenses:
Raw materials ($2.30q) 55,200
Wages and salaries ($6,400 + $0.20q) 11,200
Utilities ($2,100 + $0.05q) 3,300
Facility rent ($3,300) 3,300
Insurance ($2,000) 2,000
Miscellaneous ($500 + $0.10q) 2,900
Total expense 77,900
Net operating income $ 30,100

In July, 25,000 meals were actually served. The companys flexible budget for this level of activity appears below:

Flight Caf
Flexible Budget
For the Month Ended July 31
Budgeted meals (q) 25,000
Revenue ($4.50q) $ 112,500
Expenses:
Raw materials ($2.30q) 57,500
Wages and salaries ($6,400+ $0.20q) 11,400
Utilities ($2,100 + $0.05q) 3,350
Facility rent ($3,300) 3,300
Insurance ($2,000) 2,000
Miscellaneous ($500 + $0.10q) 3,000
Total expense 80,550
Net operating income $ 31,950

1. Calculate the companys activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

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